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That's a good follow-up, with the quibble that the math is wrong -- he added $7.5k for insurance as a benefit for a salaried employee, then also subtracted it a
by armoredkitten 4y ago
That's a good follow-up, with the quibble that the math is wrong -- he added $7.5k for insurance as a benefit for a salaried employee, then also subtracted it as an additional expense for being self-employed. So he double-counted it. Which is odd, given that he didn't use the same logic when talking about the other benefits he lists, like vacation, 401(k) matching, and equipment. Either he should have subtracted all of those from the self-employed amount, or added them all to the salaried amount, but not both.
So really, the difference in take-home pay should be $98,058 vs. $77,842. Or to put in terms of gross revenue ("Total Income", as he puts it), the comparative target number for self-employed people would be $132,371. It doesn't negate his overall point, I just figured I'd mention it.
- tyingq 4y agoGood catch, though any decent health insurance you can get on your own would be quite a lot higher than $7.5k/year. What I currently pay ~$500/month for via work used to be $2k+/month when I was self-employed. So in real-life it wouldn't always be a wash.
- jjav 4y ago> Good catch, though any decent health insurance you can get on your own would be quite a lot higher than $7.5k/year. I mean, my salary contribution to paying the company-sponsored health plan is ~$2K/month, so 14K/year. That's with my employer paying the other ~half of the cost! Health insurance in the USA is brutal.